Why it could pay to brave emerging markets this year

Back to Brics: the major emerging markets could provide the extra risk investors need if they are to sustain the returns they have enjoyed in recent years

Back to Brics: the major emerging markets could provide the extra risk investors need if they are to sustain the returns they have enjoyed in recent years
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By

Paul Raphael

April 19, 2017 Updated: April 20, 2017 10:03 a.m. GMT

After underperforming for five years, emerging markets delivered solid returns in 2016, and the start of this year shows promising signs.

Low global interest rates, continued growth in China and the United States, stabilisation of commodity prices and economic recovery in most emerging markets, combined with politically-driven relaxation of austerity measures, could, among other things, contribute to higher than expected global growth over the course of 2017.